Warehouse REIT PLC GBP5.3m Glasgow Airport industrial property purchase (7748Q)
02 March 2021 - 6:00PM
UK Regulatory
TIDMWHR
RNS Number : 7748Q
Warehouse REIT PLC
02 March 2021
2 March 2021
Warehouse REIT plc
(the 'Company' or 'Warehouse REIT')
WAREHOUSE REIT ACQUIRES GLASGOW AIRPORT MULTI-LET INDUSTRIAL
PROPERTY FOR GBP5.3 MILLION
-Completes acquisition programme underpinning recent successful
GBP45.9m equity raise-
Warehouse REIT, the AIM-listed company that invests in
e-commerce urban and last-mile industrial warehouse assets in the
UK, announces the acquisition of a modern multi-let warehouse
estate on Glasgow Airport Business Park, Glasgow, totalling 55,600
sq ft. The purchase price of GBP5.3 million reflects a net initial
yield of 6.3%.
The three units, which range from 16,500 sq ft to 21,600 sq ft,
are occupied by two global transport, logistics and delivery
companies and a craft beer distributor. The property generates a
net rental income of GBP357,000 per annum, equating to a low
average passing rent of GBP6.40 per sq ft and provides a WAULT of
over 4 years to expiry.
Glasgow Airport Business Park is a prominent business location
adjacent to Glasgow Airport, approximately 9 miles west of the city
centre. Occupiers benefit from strong local and global transport
links, including plane, train, bus and car networks. The business
park is located within one minute's drive of the M8 motorway,
Scotland's busiest arterial route, and will further benefit from
the development of the proposed Glasgow Airport Tram Link.
Glasgow is Scotland's largest city and its surrounding region is
home to 2.3 million people, totalling more than 40% of Scotland's
population and making it the fifth largest urban area in the UK.
Benefiting from strong industrial occupational demand throughout
the COVID-19 pandemic, Scotland's industrial market saw take-up in
the first three quarters of last year reach over 4 million sq ft, a
2.5% increase on the same period the previous year.
On 5 February 2021, Warehouse REIT announced it had successfully
raised GBP45.9 million by way of a placing to fund a near term
pipeline of acquisitions. Today's announcement follows the
previously announced GBP14 million acquisition of two distribution
warehouses in Harlow and a GBP35 million warehouse estate in
Liverpool and marks the successful deployment of GBP57.4 million
(including costs), to give a blended NIY of 6.3%.
Andrew Bird, Managing Director of the Investment Advisor,
Tilstone Partners Limited, commented: "Glasgow is one of the UK's
most dynamic cities, with a growing workforce. Given ongoing
e-commerce demands and a vibrant occupational market, it is
forecast to see strong levels of warehouse investment activity and
rental growth. The business park occupies a highly sought-after
position and furthers the Company's exposure in what is a key
market, whilst adding three strong covenants to the tenant
roster.
"Whilst the Company has now completed on its near-term pipeline
identified as part of the recent successful placing, thereby
deploying all of the equity raised, it continues to source
attractive opportunities in line with its ambition to continue
scaling and diversifying the portfolio, utilising the agreed
Revolving Credit Facility."
-ENDS-
Enquiries: via FTI Consulting
Warehouse REIT plc
Tilstone Partners Limited +44 (0) 1244 470
Andrew Bird, Paul Makin, Peter Greenslade 090
FTI Consulting (Financial PR & IR Adviser
to the Company) +44 (0) 20 3727
Dido Laurimore, Richard Gotla, Ellie Perham-Marchant 1000
G10 Capital Limited (part of the IQEQ Group),
AIFM +44 (0) 20 3696
Maria Glew 1302
Peel Hunt (Financial Adviser, Nominated Adviser
and Broker) +44 (0)20 7418
Capel Irwin, Carl Gough, Harry Nicholas 8900
Further information on Warehouse REIT is available on its
website:
http://www.warehousereit.co.uk
Notes to editors:
Warehouse REIT is an AIM listed UK Real Estate Investment Trust
that invests in and manages e-commerce urban and 'last-mile'
industrial warehouse assets in strategic locations in the UK.
Occupier demand for urban warehouse space is increasing as the
structural growth in e-commerce has driven the rise in internet
shopping and investment by retailers in the "last mile" delivery
sector, yet supply remains constrained giving rise to rental
growth.
The Company is an alternative investment fund ("AIF") for the
purposes of the AIFM Directive and as such is required to have an
investment manager who is duly authorised to undertake the role of
an alternative investment fund manager. The Investment Manager is
currently G10 Capital Limited and Tilstone Partners are the
Investment Advisor.
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END
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